not to get ahead of myself since the markets are still positive and still, technically speaking, in an uptrend but something for anyone still heavily long or those looking to short a pullback might consider this.  often, when we get these ridiculously over-extended, momentum fueled rallies, especially those with lots of warning signs flashing, what you often get when the music finally stops is a rush to the exits.  many momentum players, at least the smart one’s, will continue to stay let the profits run on their longs but gradually keep trailing their stops up tighter and tighter.  therefore, once a pullback to a severely overbought, momentum fueled market like this does come, the selling can start to snowball at a very fast rate as the first layer of stops getting hit, leads to more selling which then bleeds down and triggers the next level, and so on….  again, not to get ahead of myself but just something to be aware of if you whether you are long, looking to protect profits; in cash looking to buy the first dip (don’t jump the gun); or in cash looking to short a pullback one you think it’s “safe” to do so.  my preference in these situations, fwiw, is to gradually start scaling in and then more aggressively add to those positions once you think that it has become apparent that the music has stopped and the player are all rushing to grab a seat before they are all taken.